Section 2103. Fuel Adjustment

2103.01 DESCRIPTION.
A fuel adjustment factor will be applied to payments and partial payments for quantities of certain items of excavation work as the work is done, in accordance with this specification when indicated in the contract documents.

2103.02 APPLICATION.
Fuel adjustment will be applied to all Class 10, 12, and 13 Excavation, Embankment-In-Place (non-dredge material), Selected Backfill Material, and Topsoil which is work of the contract. A fuel usage factor of 0.20 gallon per cubic yard (1.0 L/m3) will be used for all excavation items of work covered by this specification. A fuel usage factor of 0.27 gallon per cubic yard (1.3 L/3) will be used for Embankment-in-Place (non-dredge material).

Fuel adjustment will also be applied to Embankment-In-Place (dredge material). The fuel usage will be based on billed gallons (liters) of fuel used.

2103.03 PRICE INDEX.
A Current Price Index (CPI) in dollars per gallon (liter) will be established by the Department of Transportation for each month. The CPI will be the price of No. 2 High Sulfur Diesel, as reported by the Oil Price Information Service, using the first weekday of the month and the average of all prices reported for Des Moines. This information will be printed in the Weekly Letting Report published by the Department.

The Base Price Index (BPI) for each contract will be the CPI in effect during the month previous to the month of letting of that contract.

2103.04 METHOD OF MEASUREMENT.
The Contractor shall provide to the Engineer a monthly spreadsheet (format of the spreadsheet will be provided by the Engineer) with quantities, and the fuel adjustment for the month (even if there will be no adjustment).

If the contract quantity for an item is in tons (megagrams), the Contractor shall convert the quantity to cubic yards (cubic meters) using a conversion factor approved by the Engineer. The total quantity of cubic yards (cubic meters) for each month (Y) shall be the sum of these quantities.

If the work is not completed within the contract period or authorized extensions thereof, the CPI to be used for work done after the contract period shall be the CPI that applied during the last working day within the contract period, including authorized extensions.

A. The Contractor shall compute the Gross Fuel Adjustment (GFA) for all items of work covered in this specification other than Embankment-In-Place (dredge material) using the following formula:

(English) GFA = 0.20(CPI-BPI)Y
(Metric) GFA = 1.0(CPI-BPI)Y

Note: The GFA may be positive or negative.

The Contractor shall compute the first $0.15 per gallon ($0.04 per liter) of adjustment (FFA) for all items of work covered by this specification other than Embankment-In-Place (dredge material) using the following formula:

(English) FFA = 0.20($0.15)Y
(Metric) FFA = 1.0($0.04)Y

B. The Contractor shall compute the Gross Fuel Adjustment for Embankment-In-Place (dredge material) (GFADredge) using the following formula.

(English) GFADredge = $0.15 (Billed gallons of fuel used per month)
(Metric) GFADredge = $0.04 (Billed liters of fuel used per month

Note: The GFADredge may be positive or negative.

The Contractor shall compute the first $0.15 per gallon ($0.04 per liter) of adjustment for Embankment In Place (dredge material) (FFADredge) using the following formula:

(English) FFADredge = $0.15 (Billed gallons of fuel used per month)
(Metric) FFADredge = $0.04 (Billed liters of fuel used per month

If the FFA is equal to or greater than the GFA, the Net Fuel Adjustment will be zero, and no fuel adjustment payment will be made. The same applies to FFADredge and GFADredge.

If the GFA is greater than the FFA, the Net Fuel Adjustment will be determined as GFA-FFA. If the GFA is less than 0.0, the Net Fuel Adjustment will be determined as GFA+FFA. The same applies to GFADredge and FFADredge.

2103.05 BASIS OF PAYMENT.
The Contractor will be paid the Net Fuel Adjustment for each month, subject to the deduction for partial payments described in Article 1109.05. Should the Net Fuel Adjustment be negative, an equal amount will be deducted on payments made to the Contractor from sums otherwise due. This payment or deduction will be made by change order.

On completion of the work of the contract, for all items covered in this specification other than Embankment-In-Place (dredge material) the sum of the total quantities (Y) for each monthly period will be adjusted, if necessary, to agree with the final quantities to be paid. On completion of the work of the contract for Embankment-In-Place (dredge material), the sum of the total quantities for billed gallons (liters) of fuel used for each monthly period will be adjusted, if necessary, to agree with the final quantities to be paid. This adjustment will be made by either subtracting the proper quantity from the last adjustment made; or adding the proper quantity and computing the adjustment on the basis of the CPI in effect on the last working day any of this work was done.

On completion of the work of the contract, the monthly fuel adjustment will be revised by pro-rating any variance from the plan quantity.

This payment or deduction shall be full compensation for all fluctuations in fuel prices during the time the contract work is being done.